Majid Al Futtaim for PPPs to unlock $30trn sustainable fund
DUBAI, December 4, 2023
Majid Al Futtaim, in its newly published whitepaper entitled 'Aligning Growth with Purpose', examines the significant increase in sustainable finance across the Mena region and the ways it can act as a catalyst for positive change.
The Emirati group is recognised as a pioneer in sustainable financing for the region. It is the first privately-owned Dubai corporation to incorporate green Islamic financing into its funding structure, most recently raising $500 million through its fourth green capital markets issuance.
Majid Al Futtaim also introduced innovative sustainability-linked loan financing with a 'penalty-only' loan structure.
"The Mena region is currently witnessing a surge in interest from investors actively seeking opportunities to allocate capital to projects with a strong environmental, social and governance (ESG) focus," said Ahmed Galal Ismail, the CEO of Majid Al Futtaim - Holding.
"Finance is a critical enabler of climate action, and by doubling down on developing the right structure and mechanisms, the MENA region is positioned to become a thriving hub for sustainable finance, leading the way toward a low-carbon and resilient future," stated Ismail.
"Sustainable finance will play a fundamental role as we transition to a net zero carbon economy and collectively strive to meet the aims of the Paris Agreement and the SDGs. This progress, however, is only achievable if we work collectively to take action," he stated.
"We are advocating for collaboration between both the public and private sectors, with governments taking responsibility for enabling favourable conditions and incentives for investment, and private sector leadership and finance to drive transformation," remarked Ismail.
"This coordinated and determined commitment will build more resilient, equitable, and sustainable organisations, and has the capacity to future-proof the global economy," he added.
In its whitepaper, Majid Al Futtaim has highlighted the importance of green finance in the pursuit of achieving ESG goals. It has also examined the region's adoption of green financing, and the potential barriers to success.
It also puts spotlight on the crucial role of bodies such as the World Economic Forum, which is working to support this collaborative action by bringing together public and private actors to catalyse sustainable infrastructure investment.-TradeArabia News Service